The market has a bleak outlook for Thompson Creek Metals.
The Canadian metals company has been getting punished since early
2011, when it peaked at $16. This morning it's trading at $4.22,
down another 9.05 percent.
Our Depth Charge tracking system detected the purchase of about
2,300 September 4 puts against open interest of just 203 contracts.
Most of the large blocks priced for $0.40.
Those puts will make money if TC continues to drop throughout the
summer. They can also make money from
increasing, which often happens when a stock is selling off. (See
Shares are down more than 25 percent in the last week alone, with
most of that decline coming after the company announced the sale of
$200 million in complex high-yielding "tangible equity units."
Proceeds will be used to finish building its Mount Milligan copper
and gold mine.
Overall option volume in the stock is 5 times greater than average
so far today, with puts accounting for more than three-quarters of
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